Adani Enterprises Ltd (AEL),the flagship company of the Adani Group,on Thursday announced its decision to exit the real-estate business. The company felt that the move to divest its holding in the real-estate business,which is largely spread in the property markets of Ahmedabad and Mumbai will help it focus on its core business of coal mining,ports and power generation.
Adani is already in the process of developing a Rs 5,000-crore integrated township located on the corridor between Ahmedabad and Gandhinagar. It has properties in prime locations in Mumbai including the one at the International Finance & Business Centre (IFBC) in Bandra-Kurla Complex (BKC) that is close vicinity to some of the prime commercial developments in BKC. It mostly runs its real-estate business through its subsidiary Adani Infrastructure and Developers Private Ltd is estimated to have an asset base of over Rs 2,000 crore.
A decision in this regard was taken at the meeting of board of directors of the company held on Thursday. Real-estate is not our core business and so we have decided to make a complete exit. Secondly,it is not in sync with our other business where we see a lot of potential for growth. Be it energy or logistics,we have a lot of potential to be number one and we want to concentrate our energies and time on these businesses, Devang Desai,chief financial officer of AEL,told The Indian Express. The company official said that in the coming days the details of this divestment will be worked out.
AEL also declared its third quarter results on Thursday. The net profit of the company for the three months ending December 31,2011 stood at Rs 407.28 crore,down from the Rs 474.41 crore it clocked during the same period last year. The AEL stock opened at 410.20,plummeted to a low of 379.60,before closing at Rs 392.55 on the Bombay Stock Exchange.